Analysis of City-Clusters in China

 

-       Analysis of City-Clusters in China

Factor Condition/Endowment

Supply of skilled manpower: Shandong is 300 km wide, among the largest of the popularly cited city clusters and also it is surrounded by other cities. Therefore, it has large pool of manpower.

Transportation: It has road, inter-city rail and mainly it has port, Wingdao which makes it very especial place. Also, many road and rail way project is going on such as opening of the Qingdao-Yantai-Weihai-Rongcheng intercity railway line and international airports. Thus, this region is connected with other cities by transportation facilities which facilitates of transportation of people and commercial products.

Natural resources:  It has one of the biggest sapphire deposits in the world. Shandong also has huge petroleum deposits, especially in the Dongying area in the Yellow River delta. It also produces the salt from sea water.

Firm strategy, structure and rivalry

 Many foreign countries have invested in this place, especially Korean and Japanese. Thus, there is large competition in term of production locally as well as internationally. It produces Jewelry, Wine and beer such as Tsingtao Beer, Haier and Hisense. Furthermore, it produces oil, automobiles and heavy industrial goods. Hence, the competition with the industry is growing as many firms are competing with each other and also foreign investment is growing in this area. As a result, the local competition has improved their competitiveness and innovation. Furthermore, the municipal governments are competing with each other which is good for developments as a whole.

Demand Condition

The local and international customers are demanding the low budget products so industries are using skilled but comparatively low cost labor. The production industries are also being benefited by its learning experiences over time. Furthermore, the demands of infrastructure development are forcing the local government to invest in road, railway, airport etc which strategically helping for easy supply and better production facilities. Furthermore, the demand of technology development is growing and there is foreign investment in IT industries from different parts of worlds.

Related and supporting Industry

Shandong industries are supported by own resources and suppliers. It has very good soil for production and supply of vineyards which supply is facilitated the wine industry. It doesn’t have to rely heavily on others for jewelry supply as it has its own deposits. It is the largest fossil fuel consumer in china and it is maintaining its demand of fuel from its own petroleum deposits. Also, the transportation and port supported its industries significantly.

Conclusion:

Shandong peninsula and its geographically advantageous position with huge natural resources. transport and port industry supports it in consequence of that was very interested in a rapid development of foreign investors. Based on this we can say that the competition in this area is very high compared with other regions also needs infrastructure development compels local authorities to invest in roads, railways, airports, etc., which are strategically help to smooth the supply and better production . in this context is a large flow of foreign investment in the region.
in the near future, Shandong Peninsula will be one of the key in the economy of China